£1,500 Loans

Who can get a £1,500 loan?

My Community Finance works with credit unions that provide fair and ethical loans. The credit unions we work with offer loans between £1,500 and £25,000 over 1-5 years.

You can apply for a £1,500 loan from one of the credit unions we work with via our website. You’ll need to become a member of a credit union to take out a loan with them. Membership criteria can vary, but the credit unions we work with accept members from most professions and those from various organisations such as the National Trust and the Co-Op.

When you apply for a £1,500 loan via our website, we’ll match you with one of the credit unions we work with who you’ll be eligible for membership with.

You’ll also need to meet the following eligibility criteria:

Be between the ages of 21 and 65
Be employed with an annual income of at least £18,000
Be a resident of the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man)

Finally, you’ll also need to pass the relevant affordability and credit checks. These will be run when you apply.

How do I apply for a £1,500 loan?

We’ve made applying for a £1,500 loan straightforward with our simple online form. Here’s an overview of the application process:

First, you must decide how long it will take to repay your £1,500 loan. The credit unions we work with offer loan terms from 12-60 months.
You’ll then request a personalised quote. To provide you with this, we’ll perform a soft credit check which won’t affect your credit score, and only you’ll be able to see a record of it on your credit report.
If you meet our partner credit unions' initial eligibility criteria, we'll inform you of the APR you’ll be offered on your £1,500 loan. This is valid for 30 days, so you have some time to think about if it’s right for you.
If you want to go ahead with the loan, we’ll perform a hard credit check on your credit report, which other lenders or organisations with access to your credit record can see.
We’ll also send you a loan agreement, along with the terms and conditions of the loan contract. Once you’ve read and are happy with your £1,500 loan terms, you’ll sign your loan agreement.
The credit union will aim to make a decision on your personal loan within two working days of you signing your loan agreement (working days are Monday - Friday excluding bank holidays). If successful, you should receive your £1,500 loan within two working days of it being approved.

How much will a £1,500 loan cost?

The overall cost and monthly repayments on a £1,500 loan will vary depending on your repayment period and interest rate.

Interest rate

When you apply for a £1,500 loan with one of the credit unions we work with, you’ll receive a personalised APR based on your financial circumstances. APR stands for ‘Annual Percentage Rate’ and indicates how much interest will be payable on your loan over a year, combined with any fees (APR is a generic term - the credit unions we work with don’t charge fees for taking out the loans). The higher your APR, the more expensive your loan will be.

Repayment period

The term you choose to pay back your loan over, will determine how long you pay interest on it for. Choosing a longer repayment period will usually result in lower monthly payments but a higher overall cost of the loan as you pay interest over a longer period of time.

When you’re applying for a £1,500 loan, you will be asked to choose your loan term. When selecting this, it is important to carefully consider how much you want to pay back each month and how it will impact the total cost of your £1,500 loan.

You can use our loan calculator to understand how much your loan could cost and see how changing your loan term could affect the monthly and overall cost of borrowing £1,500. It’s important to remember that the loan calculator uses a representative APR, which indicates how much interest a typical borrower will pay if they borrowed for a year. Your actual APR could be higher or lower than the example used by the calculator which will impact how much you pay.

Can I get a £1,500 loan with bad credit?

In the UK, there are three leading credit reference agencies (Equifax, Experian and TransUnion). Lenders, including one of the credit unions we work with, use data from one or more of these agencies to learn about your financial circumstances and decide if they can offer you a £1,500 loan.

You can see the information in your credit report yourself using apps and websites such as Experian, ClearScore and Credit Karma. It’s a good idea to look at your credit score regularly to understand your eligibility to borrow money and check there’s not anything unexpected in your report (this can be a sign of fraud).

All three credit reference agencies use a slightly different scoring method but will place you into one of four categories: Excellent, Good, Fair and Bad.

The credit unions we work with accept those with a “fair” credit rating or better, which means if you have “bad” credit, you’ll likely be turned down for a £1,500 loan.

However, you can take steps to improve your credit score and increase your chances of being able to borrow £1,500 before applying. Here are some things you can do to improve your credit score:

Ensure you’re on the electoral roll - you can do this by registering to vote, which helps to prove your fixed address.
Avoid making more than two credit applications within six months - this can appear to lenders that you’re having financial difficulties and are borrowing to make ends meet.
Ensure you pay any bills and credit repayments on time and in full.
Check that the information on your credit report is up to date and accurate - if you spot any errors, contact the credit reference agency as soon as possible to correct them.
Don’t withdraw cash using credit cards - doing so can make lenders think you’re in financial trouble.
Keep your credit utilisation below 25% - this is the amount of money you have actually borrowed divided by the total amount you are eligible to borrow e.g. credit card limit

How long will it take to repay a £1,500 loan?

The time it takes to repay your £1,500 loan will depend on the repayment period you chose when you applied. We work with credit unions that offer loans which can be paid back over 12-60 months.

Choosing a longer loan term will usually mean you pay back less each month, but it will take you longer to pay off the loan and you may end up paying more in interest as it’s charged over a longer period.

How soon will I receive my £1,500 loan?

The credit union will try to get a decision on your £1,500 loan application to you within two working days of you signing your loan agreement (these are Monday - Friday excluding bank holidays), In some cases, this process can take longer if additional checks need to be carried out.

Once your £1,500 loan is approved, the credit union will aim to deposit the money into your bank account within another two working days.

Can I repay my £1,500 loan early?

Yes - if you take a £1,500 loan out with one of our credit union partners you can repay it in full at any time.

To start the process, you’ll need to login to your My Community Finance portal and request an early repayment quote. This will show how much you have to repay and includes any reduction in interest from paying early, along with early repayment fees if they apply.

The portal is also where you’ll find instructions for how to make the repayment, if you choose to go ahead.

What can I use a £1,500 loan for?

A £1,500 loan can serve lots of different purposes, depending on your needs. For example, you could use it to spread out the cost of a large purchase, make minor improvements to your home, or fund a dream holiday.

A £1,500 loan can also be used to pay for unexpected expenses, like a broken boiler or an unexpected bill. Another option is to consolidate high-interest debts, such as credit card balances, into a single monthly payment that’s easier to manage.